I don't think it will go to 15c. 15p is about the level it will eventually settle at IMO (I'm in the UK so I use UK prices in pence). Bandy has raised money at higher SP prices so while the original rise was not justified to begin with, the money raised at those levels is now 'on the books' so to speak, so I don't see a return to the 11p levels.
Re: Uganda and Puntland, the oil price is higher today, yes, but the political risk in Puntland is higher than Uganda. Obviously predictions of political risk discount are a bit of a stab in the dark as it's not based on cold hard facts and figures, but Gulf Keystone Petroleum (AIM: GKP) have found several billion barrels in Kurdistan, and are trading at less than $1 a barrel currently because of the political risk. They're also much further on with the development process than RMP, having discovered their oil 3 years ago, appraised the field, and proven it flows at highly commercial rates. RMP has yet to strike, and even if it does, substantial field appraisal will still need to be done.
At the other end of the scale, British Petroleum (LSE: BP-) trades at less than $5 a barrel, and they're obviously a major oil company, with world class leadership, paying dividends to shareholders, and bottomless pits of cash with which to develop their prospects. RMP have none of that yet. Adjust your risk discount accordingly.
RMP Price at posting:
56.0¢ Sentiment: Sell Disclosure: Not Held
